California Court of Appeal

Dismissal of plaintiff-borrower's action challenging defendant-bank's nonjudicial foreclosure is reversed and remanded, where: 1) although the plaintiff-borrower's allegations are somewhat confusing and may contain contradictions, he nonetheless has stated a wrongful foreclosure claim under the lenient standards applied to demurrers; 2) a borrower may challenge the securitized trust's chain of ownership by alleging the attempts to transfer the deed of trust to the securitized trust occurred after the trust's closing date; and 3) transfers that violate the terms of the trust instrument are void under New York trust law, and borrowers have standing to challenge void assignments of their loans even though they are not a party to, or a third party beneficiary of, the assignment agreement.

Appellate Information

• Decided 08/08/2013
• Published 08/08/2013

Judges

• FRANSON

Court

• California Court of Appeal

Counsel